The debate over Wall Street regulation has tended to divide politicians along party lines. But on one issue at least, two senators, a Democrat and a Republican, see eye to eye.
In a new letter to be sent to regulators on Wednesday, Senator Sherrod Brown, Democrat of Ohio, and Senator David Vitter, Republican of Louisiana, argue for tougher rules on bank capital reserves, the cushion that financial institutions must keep against losses. The current proposal does not go far enough, they say.
“With financial regulators considering a host of new domestic and international capital requirements, we write today to urge your agencies to simplify and enhance the capital rules that will apply to U.S. banks,” reads the letter from the two lawmakers.
Stricter requirements would “properly align incentives for megabanks by lessening government support for the financial sector, and reassure financial markets that the U.S. financial system is healthy,” the lawmakers write.
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